China’s obsession with Taiwan is nothing to do with money

Does President Xi’s first address of the new year spell trouble for Taiwan? In a 30 minute speech on Taiwan, Xi used much fiercer language than his predecessors on Taiwan’s reunification. Journalists have reported it as ‘chest-beating’ and ‘threatening’. Phrases like ‘the reunification of Taiwan…is the inevitable requirement of the rejuvenation of the Chinese nation’ and ‘we do not promise to renounce the use of force’ certainly don’t bode well. But the speech is actually interesting for a different reason: it reveals why the Chinese are so obsessed with Taiwan. Many outside China don’t understand why a country of 1.7 billion people with the world’s second largest economy is so obsessed with a tiny island of 23 million people. The answer isn’t and never has been about economics. As Xi makes clear in his speech, it’s all about identity.

To understand why China does what it does in foreign policy, westerners must understand the country’s recent history.